Mark Zuckerberg to testify in high profile social media trial
Watch on YouTube ↗  |  February 18, 2026 at 17:09 UTC  |  2:07  |  CNBC
Speakers
Julia Boorstin — Senior Media & Tech Correspondent

Summary

  • Mark Zuckerberg is testifying in a high-profile trial in Los Angeles regarding Meta's impact on youth mental health.
  • The case is described as the social media industry's "Big Tobacco moment," with plaintiffs arguing that product design (not just content) caused addiction and harm.
  • A key legal strategy involves bypassing Section 230 immunity by focusing on "product design and liability" rather than third-party content.
  • Unlike Meta, competitors YouTube (Google), TikTok, and Snap have already settled this specific case.
Trade Ideas
Ticker Direction Speaker Thesis Time
AVOID Julia Boorstin
Senior Media & Tech Correspondent
The trial is described as the "industry's Big Tobacco moment." The suit takes a "novel approach... focused on product design and liability" to bypass Section 230, and "thousands of other cases could play out" based on this verdict. The comparison to Big Tobacco suggests a potential structural shift in liability and regulation. If the jury accepts that "addictive design" is not shielded by Section 230, Meta faces not only monetary damages but potentially forced changes to the algorithms that drive user engagement and ad revenue. AVOID. The binary risk of a "bellwether" verdict and the emotional weight of testimony from bereaved parents create significant negative headline risk and uncertainty. Meta wins the case, reinforcing its legal defenses; the jury finds Instagram was not a "substantial factor" in the plaintiff's struggles. 0:32
WATCH Julia Boorstin
Senior Media & Tech Correspondent
"YouTube, TikTok and Snap were named in this case, but they have settled now." By settling, Google (YouTube) and Snap have removed the immediate volatility of a jury verdict and the negative PR of a CEO cross-examination. However, if Meta loses on the "product design" argument, the legal precedent will eventually apply to the entire sector, reintroducing risk to these names later. WATCH. They are relatively safer than Meta in the immediate term (having settled), but the sector's regulatory moat is being tested. Settlement terms (undisclosed) impact margins; a Meta loss triggers sector-wide sell-off regardless of individual settlements. 1:17